Strategic Leadership for Personal Computers and Media Devices

Question: Discuss about theStrategic Leadership for Personal Computers and Media Devices. Answer: Apple Company specializes in designing, manufacturing, and marketing of personal computers, media devices, and mobile communications. Furthermore, the company also designs portable music players, software, accessories, third-party digital solutions, and networking. Today, the company operates in US, Europe, Asian Pacific, Middle East, and Africa. Strengths Strong competitive advantage using Horizontal and vertical integration High average selling price (ASPs) Capability in RD Strong distribution channels Weaknesses Strong dependence on iPad and iPhone products Opportunity Expected future growth in smartphone market Robust growth in smart wearable products Increased uptake of Apple products in retailing Growth in Apple pay Threats Premium pricing likely to restrain growth Lawsuits and litigations Dynamic market Table 1: APPLE SWOT Analysis, source: Apple Inc SWOT Analysis, 2018 Use of robust value chain The company utilizes its value chain to create a strong distribution channels (Ketchen Short, 2011). Apple depends on primary activities and support activities to design and manufacture high quality products. Currently, the company executive chooses strategies by examining resources and capabilities. Apple Inc. relies on value chain to chat its path of designing and manufacturing products and selling products to customers (Apple Inc SWOT Analysis, 2018). Today, Apple depends on its strong and extensive distribution channels. The company uses direct and indirect distribution channels in order to reach customers, retailers, government markets, and enterprises (Apple Inc SWOT Analysis, 2018). Apart from the direct strategies, the company strategy involves using indirect distribution channels to sell through value-added resellers, third-party cellular network carriers, retailers, and wholesalers. Use of Strategic resources Resource-based theory maintains that companies rely on strategic resources to utilize opportunities of developing sustainable competitive advantage (Ketchen Short, 2011). Currently, Apple has strategic resources that act as assets. Most importantly, the company has strategic resources that are nonsubstitutable, difficult to imitate, rate, and valuable (Johnson, Scholes Whittington, 2008). For example, for several years now, Apple has used horizontal and vertical integration to become a major competitor in computer industry. The company has multiple devices that offer horizontal integration. The company operating system cuts across different devices, applications, and contents. Customers cannot switch to other competitors because of dependence on its operating system. Apple leverages its strategy on a unique ability to design and develop own operating systems, services, software applications, and hardware. According to Birshan, Kar Parry (2012), other competitors find it difficult to imitate the company model of vertical integration. For instance, the company customizes in-house chip design, a complex and integrated hardware, software, as well as applications as a way of creating value-adding products. Use of Resources to capability Apple has tangible resources in terms of properties, equipment, and cash. Furthermore, it has strong intangible resources such as intellectual property, knowledge and skills of employees, and strong reputation. Currently, the company relies on resources to make capabilities provide excellent products (Armitage, 2015). Capabilities form part of what Apple does to capture value offered by resources. Apple commits much of its resources and attention towards developing products that meet customer needs (Apple Inc SWOT Analysis, 2018). The company has an ability to continue offering high valued products. Leaders employ skilled employees to create new technologies to strengthen already existing products. The company has successfully achieved all these through acquisition of third-party technology, licensing of its intellectual property, as well as investing heavily in RD. References Apple Inc SWOT Analysis. (2018). Apple Inc SWOT Analysis, 1-9. Retrieved from https://search.ebscohost.com/login.aspx?direct=truedb=bthAN=128387934site=ehost-live Armitage, J. (2015). Strategic Insights. Marketing Insights, 27(1), 22-23. Birshan, M., Kar, J., Parry, E. (2012). Becoming strategic: Three tips for any executive. Mckinsey Quarterly, (3), 60-66. Johnson, G, Scholes, K, Whittington, R. (2008). Exploring corporate strategy, (8th ed). Prentice Hall Ketchen, D., Short, J. (2011). Mastering strategic Management. Retrieved from ttps://www.saylor.org/site/textbooks/Mastering%20Strategic%20Management.pdf